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EUR/USD tumbles on strong US employment data

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EUR/USD plunged on Friday, following the stronger-than-anticipated US employment data. The pair fell after finding resistance slightly below the 1.1540 (R1) barrier and paused slightly above the support hurdle of 1.1260 (S1). The rate has been trading between these two obstacles since the 27th of January and therefore I would consider the near-term path of EURUSD to be neutral. As far as the broader trend is concerned, the price structure still suggests a longer-term downtrend. EURUSD is printing lower peaks and lower troughs below both the 50- and the 200-day moving averages. I still consider the recovery from 1.1100 (S2) as a corrective phase and I would expect the bears to eventually take control again.

• Support: 1.1260 (S1), 1.1100 (S2), 1.1020 (S3).

• Resistance: 1.1540 (R1), 1.1650 (R2), 1.1730 (R3).

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